GoPro Inc (NASDAQ: GPRO) shares have fallen from nearly $90 to the $10 range in a little over a year, prompting growth enthusiasts and value hunters alike to speculate on the future of the stock. Earlier this year on CNBC, Piper Jaffray analyst Erinn Murphy explained why the firm downgraded GoPro to Neutral and again to Underweight last October.

"The concern we started seeing in October really was anchored by some of our proprietary research with teens...the demand profile [of GoPro products] was really starting to wane," Murphy said. That, paired with an established distribution network and no new products, "was the first spark of concern."

Regarding the company's bulls who tout valuation, Murphy explained the rationale why cheap metrics might not matter. "You still are working through inventory...there are new product launches coming this year, but I'm not sure that's enough to offset some of the margin pressures we saw proliferate in the fourth quarter," she said.

Downside Under $9?

GoPro is still going to be investing in marketing and R&D, expenses that could continue to cut profitability. "That, with a backdrop of negative sales...we think numbers could continue to go lower." The stock has potential "downside" to Murphy's past price target of $9.00 on the stock (which she held at the time of the interview), particularly if margins continue to be pressured.

Earlier this week, Murphy lowered her price target from $9.00 to $7.50.

GoPro shares last traded slightly above $10 on Wednesday afternoon, less than two hours ahead of earnings.